Posts Tagged ‘interest rates’

The Commerce Department reported that consumer spending rose $34.7 billion or 0.3% in February, matching what economists had anticipated. Personal income increased $1.2 billion or less than 0.1%.

The Standard & Poor’s/Case-Shiller 20-city housing price index rose a seasonally adjusted 0.3% in January. It was the eighth consecutive monthly gain and follows a 0.3% increase in December.

The consumer confidence index rose to 52.5 in March from a slightly revised 46.4 in February. Economists had anticipated a reading of 50. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

Factory orders rose 0.6% in February, slightly above the 0.5% increase economists had anticipated. It was the sixth straight gain and follows an upwardly revised 2.5% increase in January.

The Institute for Supply Management reported that the monthly index of manufacturing activity was 59.6 in March after reaching 56.5 in February. It was the eighth straight month of expansion and the best reading since July 2004. A reading above 50 signals expansion.

Total construction spending fell 1.3% to $846.23 billion in February. It was the lowest spending level since November 2002 and followed a 1.4% drop in January.

The unemployment rate held at 9.7% in March. However, employers added 162,000 jobs last month, the most since March 2007. For the week ending March 27, initial claims for unemployment benefits fell by 6,000 to 439,000. Continuing claims for the week ending March 20 fell by 6,000 to 4.6 million.

Upcoming on the economic calendar are reports on pending home sales on April 5, consumer credit on April 7 and wholesale trade on April 9.

Existing home sales fell 0.6% in February to a seasonally adjusted annual rate of 5.02 million units from 5.05 million units in January. The inventory of unsold homes on the market rose 9.5% to 3.59 million, an 8.6-month supply at the current sales pace, up from a 7.8-month supply in January.

Orders for durable goods — items expected to last three or more years — rose 0.5% in February after a revised 3.9% increase in January. Excluding volatile transportation-related goods, orders posted a monthly increase of 0.9%.

New home sales fell 2.2% in February to a seasonally adjusted annual rate of 308,000 units from an upwardly revised rate of 315,000 units in January. Economists had expected a pace of 320,000 units. It was the fourth straight monthly decline and the lowest pace since recordkeeping began in 1963.

Initial claims for unemployment benefits fell by 14,000 to 442,000 in the week ending March 20. Continuing claims for the week ending March 13 fell by 54,000 to 4.648 million, the lowest level since December 20, 2008.

The Reuters/University of Michigan consumer sentiment index for March’s final reading was 73.6, matching February’s final reading. The index is 28% higher than it was one year ago. During the economic expansion that ended in December 2007, the index averaged 88.9.

In its third and final report, the Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 5.6% in the fourth quarter of 2009, rather than the 5.7% increase initially reported. For all of 2009, the economy contracted 2.4%.

Upcoming on the economic calendar are reports on the housing price index on March 30, factory orders on March 31 and construction spending on April 1.

Industrial production at the nation’s factories, mines and utilities increased 0.1% in February, following a 0.9% gain in January. It was the eighth consecutive monthly increase. The overall factory-operating rate rose to 72.7% of capacity in February from 72.6% in January.

The National Association of Home Builders/Wells Fargo housing market index fell two points in March to 15. Economists had anticipated a reading of 17. An index reading below 50 indicates negative sentiment about the housing market. The last time the index was above 50 was in April 2006.

The combined construction of new single-family homes and apartments in February fell 5.9% to a seasonally adjusted annual rate of 575,000 units. The decrease was largely blamed on winter blizzards in the Northeast and South. Applications for new building permits, seen as an indicator of future activity, fell 1.6% to 612,000 units.

Import prices fell 0.3% in February following a 1.3% increase in January. The drop was driven by 2.2% decline in petroleum prices. On a year-over-year basis, import prices are up 2.1%. According to the report, export prices fell 0.5% in February.

The producer price index, which tracks wholesale price inflation, fell 0.6% in February, following a 1.4% increase in January. Economists had expected a decrease of 0.3%.

Consumer prices were flat last month following a 0.2% gain in January. A rise in food prices in February was offset by a decline in gasoline and other energy costs.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.1% in February after a 0.3% gain in January. It was the 11th straight monthly increase and the longest series of gains since 2003.

Upcoming on the economic calendar are reports on existing home sales on March 23, new home sales on March 24 and consumer sentiment on March 26.

According to the ICSC-Goldman Sachs index, retail sales rose 2.9% for the week ending March 6. It was the biggest weekly gain in nine years. On a year-over-year basis, retailers saw sales increase 3.4%, the best showing in two-and-a-half years.

The Commerce Department said wholesalers cut their inventories by 0.2% in January following a downward revised 1% drop in December. Meanwhile, sales at the wholesale level rose 1.3% in January, marking the 10th straight monthly gain.

The trade deficit unexpectedly fell 6.6% to $37.3 billion in January from a revised $39.9 billion gap in December. Economists had expected the trade deficit to widen to $41 billion. Exports slipped 0.3% to $142.7 billion. Imports fell 1.7% to $180 billion.

Initial claims for unemployment benefits fell by 6,000 to 462,000 in the week ending March 6. Continuing claims for the week ending February 27 rose by 37,000 to 4.558 million.

The Reuters/University of Michigan consumer sentiment index for March’s preliminary reading fell to 72.5 from February’s final reading of 73.6. One year ago, the mid-March reading was 57.3. During the economic expansion that ended in December 2007, the index averaged 88.9.

Upcoming on the economic calendar are reports on the housing market index on March 15, housing starts on March 16 and the index of leading economic indicators on March 18.

Consumer spending rose 0.5% to $52.4 billion in January, slightly more than economists had anticipated. Personal income increased 0.1% to $11.4 billion.

The Institute for Supply Management reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 in January. Nevertheless, it was the seventh straight month of expansion. A reading above 50 signals expansion.

The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% in December. Economists had expected a decrease of 0.7%.

The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in January. A reading above 50 signals expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December.

The Labor Department reported productivity rose at an annual rate of 6.9% in the fourth quarter. Labor costs fell at an annual rate of 5.9%.

Factory orders rose 1.7% in January, slightly below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December.

The unemployment rate held at 9.7% in February. Employers cut 36,000 jobs in February, far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.5 million.

Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on March 11 and retail sales on March 12.

Last Week in the NewsThe National Association of Home Builders/Wells Fargo housing market index rose two points in February to 17. It was the first gain in five months. Economists had anticipated a dip to 14. An index reading below 50 indicates negative sentiment about the housing market.

The combined construction of new single-family homes and apartments in January rose 2.8% to a seasonally adjusted annual rate of 591,000 units. However, applications for new building permits, seen as an indicator of future activity, fell 4.9% to 621,000 units.

Industrial production at the nation’s factories, mines and utilities increased 0.9% in January, following an upwardly revised 0.7% gain in December. It was the seventh consecutive monthly increase. The overall factory-operating rate rose to 72.6% of capacity in January from 71.9% in December.

The producer price index, which tracks wholesale price inflation, rose 1.4% in January, following an upwardly revised 0.4% increase in December. Economists had expected a gain of 0.8%. The gains were largely due to higher energy costs.

Initial claims for unemployment benefits rose by 31,000 to 473,000 in the week ending February 13. Continuing claims for the week ending February 6 held steady at 4.538 million. Experts believe snowstorms in early February may have cost the economy as many as 100,000 jobs.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose a smaller-than-expected 0.3% in January after a revised 1.2% gain in December. It was the 10th straight monthly increase and the longest series of gains since 2004.